§ 254. Disposition of lost property. Except as provided in section two
hundred fifty-six of this chapter, lost property deposited with the
police, and the money constituting proceeds of lost property sold as
provided in subdivision five of section two hundred fifty-three
remaining after deduction of expenses as therein provided, shall be
disposed of as follows:

1. It shall be delivered to the owner, upon his demand and upon
payment of all reasonable expenses incurred in connection therewith, if
no written notice of any other claim to the property has been served
upon the police having custody, and the time specified in subdivision
seven of section two hundred fifty-three of this chapter has not expired
or, if such period has expired, no demand has been made by the finder or
a person entitled to assert the right of the finder as provided in
section two hundred fifty-six of this chapter.

2. If at the end of the period specified in subdivision seven of
section two hundred fifty-three of this chapter the owner has not
claimed the property, it shall be delivered to the finder, or person
entitled to assert the rights of the finder as provided in section two
hundred fifty-six of this chapter, upon his demand therefor, and upon
payment of all reasonable expenses incurred in connection therewith.

3. If at the end of ten days after expiration of the period specified
in subdivision seven of section two hundred fifty-three, the owner has
not claimed it, and no demand has been made by the finder or a person
entitled to assert the right of the finder as provided in section two
hundred fifty-six of this chapter, property consisting of money shall be
paid as provided in section two hundred fifty-eight of this chapter and
other property shall be sold at public auction and the proceeds shall be
paid as provided in such section two hundred fifty-eight. Where the
property was deposited with the state police, such sale shall be held in
accordance with rules of the comptroller.